What could be the consequences of widespread hacks of exchanges, protocols, ...

[Mahiyammahi]

You're concerned about crypto but the fear is a lot greater than this. Think about it, if the most secured crypto can be hacked omwhat is our banking system. In our country a lot of banks has comparetively lower security. Not only that we have a record of getting stolen of $1B , although they successfully steal $101 Million.

I hope that never repeats again. We are in serious era right now. Our digital identity is not a bit secured right now.

[Perfectbaby]

To be frank the way hack is taking place in the cryptocurrency space is actually discouraging because this could be one the thing that may discourage lots of people to adopt to the cryptocurrency space.
For sure, it's seems like the banking system is more secure than the crypto space, because no body would want to put money in a platform they wouldn't be sure off. If an action is not taken, we may see this hack to keep hindering people that may want to venture into the space.

[Donk1]

​Well sure, the rate of hacks is generally increasing, but that doesn't mean the crypto space is becoming vulnerable to the extent that it would turn centralized.Basically we certainly do not need more centralized money because we already have that. The purpose of cryptocurrency is to serve as a different form of money. If it were to be tampered with in any way, do you think folks would have interest in it anymore. To me there would be no difference between the two.That said folks who choose cryptocurrency as an alternative have their reasons, and perhaps we are all aware of the risks involved. So yeah as long as there are folks who will continue to choose financial privacy, I don't really think the crypto space would easily change from decentralized to centralized. Even if the rate of hacks increases all we can hope for is further development and evolution in this space that's all.....

[Zlantann]

1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack?

You just have to be a little bit more paranoid than before, but I don't think the main principles have changed. You shouldn't be storing crypto on exchanges in the first place. We've literally said this a thousand times in this board.

2. And the most important question - where could this lead?

It's a transitioning period where a lot of exploits are happening because the AI is scanning code like Speedy Gonzales, while not enough reviewing and fixing is done respectively on the other side. It can't last forever.

Some advocates of centralized platforms will also claim that some custodian wallets have also suffered some setbacks, which led to loss of funds. Nevertheless, those who keep their coins in centralized exchanges should be ready to bear the consequences.

Will this phase of AI threat pass away, or is it here to stay? The rate at which these tools are exploiting loopholes in crypto projects is becoming alarming. And these tools are being upgraded every day to become smarter.

[Antotena]

To be frank the way hack is taking place in the cryptocurrency space is actually discouraging because this could be one the thing that may discourage lots of people to adopt to the cryptocurrency space.
For sure, it's seems like the banking system is more secure than the crypto space, because no body would want to put money in a platform they wouldn't be sure off. If an action is not taken, we may see this hack to keep hindering people that may want to venture into the space.

Some of my bin crypto friends has bring this open discussion with me and I just have to find a way to make a defence for crypto but within me, I know things are very ugly than they look. Which bank in the history of man kind has lost $6b to an unidentified hacker. It has never happened and it wouldn't happen and even if it did, the person will be identified one day. How about crypto, Bybit hack is now over a year and no lead about the hackers, it's always North Korea and yet nothing is done about it.

If these hackers can get into Binance which is the largest exchange and securities, the rest of the exchanges should expect the same attack. I just hope that there is a permanent solution to these hack. It's damaging reputation, you can't even make arguments with people that don't know what's going on within and they have every right to doubt about it. If this happens to banks, I believe we will be saying alot about them right now.

[Josefjix]

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

What do you think?

I have thought about the same thing, what happened in the centralized exchange
Looks like they all planned it,
Looks like the same hacker doing all the work,
Looks like these hackers had figured out the vulnerable code that secured cex.

The trust on cex will be reduced for a while, and I know that newbies will keep it busy but old users will stay away from using cex no more.

[Cryptomultiplier]

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

What do you think?

I have thought about the same thing, what happened in the centralized exchange
Looks like they all planned it,
Looks like the same hacker doing all the work,
Looks like these hackers had figured out the vulnerable code that secured cex.

The trust on cex will be reduced for a while, and I know that newbies will keep it busy but old users will stay away from using cex no more.

CEX are simply just failing day in day out and the oldies are now seeing the importance of using non custodial services more than trusting CEX that seems the best target for these hacks nowadays.
I wonder if CEX was actually created to be destroyed so as to discourage crypto currency investors from trusting and ever using crypto currencies because this has caused a lot of panic and pain lately and I cant say what's next in line for the unrevealed heartbreak we are going to face come 2027 with stricter regulations and policies.

[EluguHcman]

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack?

The cryptography is an initiative for the crypto users to take control of their securities and with the privilege of Privacy and self custodian, there is said to be mitigation against security breaches but does not entirely propose risk free because, the technology is comprised of third services.

We have also read about several hardware wallets being security comprised despites being stores its private keys offline that makes it harder for online hackers to invade while third parties and insiders has usually been hold responsible for the wallets comprised.
Even as risks and threats keep erupting, the hardware remains the best safe wallets for crypto storage.
One thing is sure that we can not entirely enjoy insecurity risk free in the space and no project can be promised risk free.
Crypto will also remain one of the safest means of saving our funds despite the challenges.

The security of our funds best lyes on us individually, we have been giving the privilege in the Decentralized industry so much and the rate of your security depends on users.

[Alpha Marine]

The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!

I don't agree with this. I mean, you can't geeralise that there is a complete careless attitude towards security.
The hackers just need one succesful opportunity to win. That is a lot of advatage against securty because you can keep them away a million times, but the ones that they are succesful, they can casue major damage.
If exchanges like Binance have careless attitude towards security, they would have been getting hacked every year because of how many attempts hackers carry out.

2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

I hold kind of contrary opinions.
The worls is ever evolving. Humans don't run into a prolem and just give us especially when it's a business or servcie where they make money. What would happen is, things like this will go on for a while then with time, they will start reducing because more innovations will be created. It won't always be like this. This is like alearning stage for the sector.

[angrybirdy]

1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

Crypto exchanges were hacked in the past and they will be hacked in the future. That doesn't mean that the overall security in the crypto world is going down to zero. This is a never ending battle between centralized crypto services and the hackers. If you don't trust centralized crypto exchanges, there's plenty of alternatives.
The stablecoins and the CBDCs aren't volatile, which means they aren't attractive to the speculative traders and investors. Only Bitcoin and some of the altcoins are attractive to the speculative day traders and long term investors. I can't imagine a crypto exchange, where only stablecons and CBDCs are being traded.

There will always be some level of security risks involved in the crypto market, even when the centralized exchanges hold the majority of the digital currency. From my point of view, the critical issue here is not in assuming that there could be no hacks at all, but in being aware of the potential risks and choosing proper places to keep your funds.

Regarding the stable coins and CBDCs, they are intended for different purposes than Bitcoin or altcoins...Due to the fact that the value of the stable coins does not change, they can be more helpful in making transactions and payments. Therefore, it becomes quite obvious that they would not attract the interest of the traders like Bitcoin or altcoins since it would be impossible to get any profits from them.

[bitLeap]

So this is like leading to a decentralization crisis, almost unthinkable to me, seeing as how the crypto situation is getting threatened from all directions like Quantum and AI/SI where is the safe place for that? there is only bitcoin, people have to go back and abandon altcoins.

[viljy]

Not long ago, Bill Gates was saying that the main danger in the near future comes from AI, not from quantum computing. And now, a few weeks later, we see confirmation of his words. Hacking incidents have become more frequent, and the scale of the Binance hack is record‑breaking. The main consequence may be a growing distrust of exchanges and decentralized services. In general, this will be observable in the coming months: whether this will actually happen or not. At the same time, I strongly doubt that this could turn people away from cryptocurrencies, and even more so from Bitcoin.

[Lontor]

Yesterday, Binance, the largest crypto exchange, was hacked - I'm sure you're all already aware of that. Against that backdrop, the news about the ByBit hack went almost unnoticed. The estimated losses are 6 billion and 1 billion dollars. But that's yesterday's news. Over the past month, we've seen a huge number of hacks specifically related to the crypto market - wallets compromised, data leaks, and so on.
As reported regarding Binance, the cause was the compromise of one devops work laptop. One laptop, one devops ... What a mess...

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

What do you think?

Careless attitude towards security how? What if it's all planned by the victims themselves? Since crypto space is not regulated heavily like the democrats wanted don't you know that it's possible that all these is all planned?

I don't even trust Binance exchange, they killed some people when their exchange crashed year ago, have you all forgotten this already? Many crime is been committed in this crypto space intentionally.

These people can make and also break at the same time or when they want, they will blame it on AI or some hackers they can't reach and that's another case closed.

[Fortify]

Yesterday, Binance, the largest crypto exchange, was hacked - I'm sure you're all already aware of that. Against that backdrop, the news about the ByBit hack went almost unnoticed. The estimated losses are 6 billion and 1 billion dollars. But that's yesterday's news. Over the past month, we've seen a huge number of hacks specifically related to the crypto market - wallets compromised, data leaks, and so on.
As reported regarding Binance, the cause was the compromise of one devops work laptop. One laptop, one devops ... What a mess...

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

What do you think?

All day, every day, the average person is forming and changing their opinions. Some will be stubborn and blindly follow a certain viewpoint until the end of the earth even if you put evidence in front of them that they are wrong. Others will be dynamic and recalculate based on new evidence. Crypto is always going to have a core base of supporters but to prop up it's price and continue adoption it need lots of casual users too - who might dip in years apart. However the more average consumers hear horror stories like this, the headline is billions have been stolen and it's quite possible it might lead to the collapse of the exchange because somebody has to cover the bill, then they are likely to find other places to put their money. We really don't know how the herd mentality will react to this but it has been a fairly muted reaction so far. In the short term we might see further dips as people pull money from other exchanges, but we've really been bad at predicting what will happen in the medium to long term.

[ColdLava40]

Actually, I have a few key questions:
1. Don't you feel that security in the crypto world is already heading toward zero, even without a quantum hack? The reason is a completely careless attitude toward security - from protocols to infrastructure, from hiring staff to "digital hygiene" rules in the workplace!
2. And the most important question - where could this lead?
I can imagine one very bad scenario: a slide toward purely centralized cryptocurrencies, something like stablecoins or CBDCs, since only they generally allow for stolen funds to be frozen and recovered, and a total loss of trust in any decentralized cryptocurrencies and protocols, causing the real crypto world to "hit rock bottom" and the general public to lose interest in "true" cryptocurrencies.

What do you think?

I talked about this yesterday on a reply, it is really scary how things are now but we don't even have the quantum computers yet.

The security systems in crypto currency is already showing a very low level of trust, not even one of them is safe from attackers what more when we have the super computers that can crack them in second? This is just the work of Ai now what if both are combined?

Where this could lead to might be very dangerous. People begin to lose faith in crypto security. Instead of buying the coins to hold they buy ETFs instead because then you get insured even when you hacks occurs on those platforms.

The perspective begins to shift to purely centralized.